Slovenia's IT market is becoming increasingly oriented towards software and services, drivenon the one hand by enterprise investments in efficiency generating and capability enhancing solutions, butalso the underperformance of hardware due to saturation and unfavourable technology trends. Softwareand services growth is expected to sustain overall market expansion in the medium term, as well as drivedevelopment of the local industry. Downside risks include external shocks, and faster than anticipatedtechnological shifts that disrupt legacy businesses.

Latest Updates And Industry Developments

Computer Hardware: EUR213mn in 2017 to EUR216mn in 2021, a compound annual growth rate(CAGR) of 0.4% in local currency terms. Saturation, PC use case cannibalisation by smartphones and ademographic drag weigh on the outlook for the hardware segment over the medium term.

Software: EUR217mn in 2017 to EUR277mn in 2021, a CAGR of 6.3% in local currency terms. Despitebeing a relatively mature software market in the region, there is still growth potential, especially intechnologies around data analytics and cybersecurity.